Dollar weakness is boosting most crop markets. The grain and soy markets moved almost unanimously higher overnight, due largely to surprisingly weak condition ratings and slow soy planting progress. Those moves were amplified this morning, when fresh optimism about an E.U.-Greece debt/banking deal sent the U.S. dollar tumbling. July corn climbed 6.0 cents to $3.5825/bushel late Tuesday morning, and December added 5.75 to $3.7475.
Dollar weakness sent beans and meal sharply higher. The weekly USDA Crop Progress report stated U.S. soybean plantings well below expectations Monday, which sparked the overnight rally in beans and meal. That move was apparently exaggerated by today’s big U.S. dollar drop as those two markets rallied. The meal surge clearly favored that market over oil, which might explain the surprising oil weakness. July soybean futures leapt 16.75 cents to $9.4275/bushel as the lunch hour loomed Monday, while July soyoil skidded 0.11 cents/pound to 34.40, and July meal ran up $5.8 to $297.10/ton.
The wheat markets proved very strong Tuesday morning. Good export news, weak winter wheat condition ratings and dollar weakness appeared to spur fresh wheat buying this morning. The move was probably exaggerated by active short-covering by funds holding huge bearish positions, especially after the July Chicago contract topped its 40 and 50-day moving averages. July CBOT wheat futures jumped 11.5 cents to $5.0525/bushel around midsession Tuesday, and July KC wheat surged 10.75 cents to $5.25/bushel, and July MWE wheat vaulted 10.5 cents to $5.585.
Bears are struggling to force discounted cattle futures lower. Underlying beef demand seems firm despite greatly elevated wholesale prices, with last week’s stable cash trading sparking Monday’s gains. Mixed afternoon beef quotes apparently caused today’s early decline, but the fact that the various contracts continue trading at significant discounts to cash seemingly limited those losses. August live cattle futures dipped 0.47 cents to 151.67 cents/pound late Tuesday morning, while December cattle sagged 0.7 to 154.35. Meanwhile, August feeder cattle futures fell 0.72 cents to 222.82 cents/pound, and November feeders slumped 0.77 to 219.00.
Profit-taking reportedly hit hog futures Tuesday morning. While CME hogs performed well Monday, they proved unable to break out above major chart resistance at modestly higher levels. That technical failure, as well as persistent ideas about short-term seasonal weakness seemed to spark long liquidation and short selling this morning. August hog futures declined 0.60 cents to 82.77 cents/pound just before lunchtime Tuesday, while December sank 0.52 to 69.65.
Cotton is testing underlying support. The cotton market seemingly has numerous reasons to rally, with last Friday’s strong export data, Monday’s news of slow plantings and today’s big U.S. dollar dive all making the bullish case. However, cotton futures again turned downward this morning, with midsession quotes testing underlying support. The inability to sustain rallies is almost surely attracting selling from technicians and pragmatic traders. July cotton slid 0.10 cents to 63.65 cents/pound shortly after noon (EDT) Tuesday, and December futures edged 0.03 higher to 63.90.